IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/129333.html

The effects of treating co-products as waste in input-output impact modelling

Author

Listed:
  • Koslowski, Maximilian
  • Hertwich, Edgar G.

Abstract

Constrained-optimisation techniques are frequently used in input-output impact modelling, usually applied to single-production data. When using joint-production data, one may observe even for a closed economy that more commodities are supplied than used. This begs the question of what should happen with such a commodity surplus as it does not evaporate into thin air. This is particularly interesting from an environmental perspective, since the surplus is an indication of the economy being inefficient. Here, we outline the difficulties of modelling excess commodities as waste, draw links from our proposed model to well-known models found in the literature, and describe what the influence of accounting for secondary products differently would be in terms of modelling outcomes.

Suggested Citation

  • Koslowski, Maximilian & Hertwich, Edgar G., 2026. "The effects of treating co-products as waste in input-output impact modelling," MPRA Paper 129333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:129333
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/129333/1/MPRA_paper_129333.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thijs ten Raa & Pierre Mohnen, 2009. "Neoclassical Input–Output Analysis," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 10, pages 151-179, World Scientific Publishing Co. Pte. Ltd..
    2. Weisz, Helga & Duchin, Faye, 2006. "Physical and monetary input-output analysis: What makes the difference?," Ecological Economics, Elsevier, vol. 57(3), pages 534-541, May.
    3. Naci Dilekli & Ignacio Cazcarro & Julio Sánchez-Chóliz, 2024. "Regions may share factors of production, too: Implementation of topologies within the World Trade Model," Economic Systems Research, Taylor & Francis Journals, vol. 36(1), pages 46-69, January.
    4. Shigemi Kagawa & Hajime Inamura & Yuichi Moriguchi, 2002. "The Invisible Multipliers of Joint-products," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 185-203, June.
    5. Lowe, Peter D, 1979. "Pricing Problems in an Input-Output Approach to Environment Protection," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 110-117, February.
    6. Maximilian Koslowski & Edgar Hertwich & Richard Wood, 2025. "From single to joint-production under rectangular technology choice," Economic Systems Research, Taylor & Francis Journals, vol. 37(2), pages 276-305, April.
    7. Duchin, Faye, 1990. "The conversion of biological materials and wastes to useful products," Structural Change and Economic Dynamics, Elsevier, vol. 1(2), pages 243-261, December.
    8. Yasushi Kondo & Shinichiro Nakamura, 2005. "Waste input-output linear programming model with its application to eco-efficiency analysis," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 393-408.
    9. Thijs ten Raa & Pierre Mohnen, 2009. "The Location of Comparative Advantages on the Basis of Fundamentals Only," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 23, pages 425-446, World Scientific Publishing Co. Pte. Ltd..
    10. Thijs ten Raa, 2009. "On the Methodology of Input–Output Analysis," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 9, pages 123-149, World Scientific Publishing Co. Pte. Ltd..
    11. Faye Duchin, 2005. "A world trade model based on comparative advantage with m regions, n goods, and k factors," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 141-162.
    12. Albert E. Steenge & Maaike C. Bouwmeester & André Carrascal Incera, 2019. "Rents, resources, and multiple technologies; Ricardian mechanisms in input-output modelling," Economic Systems Research, Taylor & Francis Journals, vol. 31(3), pages 445-466, July.
    13. José M. Rueda-Cantuche & Thijs ten Raa, 2021. "The Choice of Model in the Construction of Industry Coefficients Matrices," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 16, pages 271-287, World Scientific Publishing Co. Pte. Ltd..
    14. Shinichiro Nakamura & Kenichi Nakajima & Yasushi Kondo & Tetsuya Nagasaka, 2007. "The Waste Input‐Output Approach to Materials Flow Analysis," Journal of Industrial Ecology, Yale University, vol. 11(4), pages 50-63, October.
    15. Alexandre Tisserant & Stefan Pauliuk & Stefano Merciai & Jannick Schmidt & Jacob Fry & Richard Wood & Arnold Tukker, 2017. "Solid Waste and the Circular Economy: A Global Analysis of Waste Treatment and Waste Footprints," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 628-640, June.
    16. Faye Duchin & Stephen H. Levine, 2017. "Choosing among alternative technologies: conditions for assuring the feasibility of an input–output database or scenario," Economic Systems Research, Taylor & Francis Journals, vol. 29(4), pages 541-556, October.
    17. Faye Duchin & Stephen Levine, 2012. "The rectangular sector-by-technology model: not every economy produces every product and some products may rely on several technologies simultaneously," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-11, December.
    18. Shinichiro Nakamura & Yasushi Kondo, 2002. "Input‐Output Analysis of Waste Management," Journal of Industrial Ecology, Yale University, vol. 6(1), pages 39-63, January.
    19. Manfred Lenzen & Christian John Reynolds, 2014. "A Supply-Use Approach to Waste Input-Output Analysis," Journal of Industrial Ecology, Yale University, vol. 18(2), pages 212-226, April.
    20. Anders Hammer Strømman & Faye Duchin, 2006. "A world trade model with bilateral trade based on comparative advantage," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 281-297.
    21. Johansen, Leif, 1972. "Simple and general nonsubstitution theorems for input-output models," Journal of Economic Theory, Elsevier, vol. 5(3), pages 383-394, December.
    22. Faye Duchin & Stephen H. Levine, 2011. "Sectors May Use Multiple Technologies Simultaneously: The Rectangular Choice-Of-Technology Model With Binding Factor Constraints," Economic Systems Research, Taylor & Francis Journals, vol. 23(3), pages 281-302, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dilekli, Naci & Cazcarro, Ignacio, 2019. "Testing the SDG targets on water and sanitation using the world trade model with a waste, wastewater, and recycling framework," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    2. Edgar Battand Towa Kouokam & Vanessa Zeller & Wouter Achten, 2019. "Input-output models and waste management analysis: A critical review," ULB Institutional Repository 2013/359535, ULB -- Universite Libre de Bruxelles.
    3. Glenn A. Aguilar-Hernandez & Carlos Pablo Sigüenza-Sanchez & Franco Donati & João F. D. Rodrigues & Arnold Tukker, 2018. "Assessing circularity interventions: a review of EEIOA-based studies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.
    4. Faye Duchin, 2017. "Resources for Sustainable Economic Development: A Framework for Evaluating Infrastructure System Alternatives," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    5. Ignacio Cazcarro & Carlos A. López‐Morales & Faye Duchin, 2019. "The global economic costs of substituting dietary protein from fish with meat, grains and legumes, and dairy," Journal of Industrial Ecology, Yale University, vol. 23(5), pages 1159-1171, October.
    6. Wimmer, Lorenz & Kluge, Jan & Zenz, Hannes & Kimmich, Christian, 2023. "Predicting structural changes of the energy sector in an input–output framework," Energy, Elsevier, vol. 265(C).
    7. Maria Amaya & Faye Duchin & Erich Hester & John C. Little, 2022. "Applying a Coupled Hydrologic-Economic Modeling Framework: Evaluating Alternative Options for Reducing Impacts for Downstream Locations in Response to Upstream Development," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    8. Hasegawa Ryoji & Hirofumi Nakayama & Takayuki Shimoaka, 2017. "Analyzing material flow and value added associated with non-metallic mineral wastes in Japan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-15, December.
    9. Court, Christa D., 2012. "Enhancing U.S. hazardous waste accounting through economic modeling," Ecological Economics, Elsevier, vol. 83(C), pages 79-89.
    10. Reinout Heijungs & Arjan Koning, 2019. "Analyzing the effects of the choice of model in the context of marginal changes in final demand," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    11. Carlos A. L�pez-Morales & Faye Duchin, 2015. "Economic Implications Of Policy Restrictions On Water Withdrawals From Surface And Underground Sources," Economic Systems Research, Taylor & Francis Journals, vol. 27(2), pages 154-171, June.
    12. Carlos A. Romero & Sofia Rojo Brizuela & Gustavo Ferro, 2024. "Measuring the Effects of Increasing Circularity in the Economy Through Recycling," Circular Economy and Sustainability, Springer, vol. 4(1), pages 503-522, March.
    13. Vanessa Zeller & Edgar Battand Towa Kouokam & Marc Degrez & Wouter Achten, 2019. "Urban waste flows and their potential for a circular economy model at city-region level," ULB Institutional Repository 2013/278528, ULB -- Universite Libre de Bruxelles.
    14. Ciprian Cimpan & Eivind Lekve Bjelle & Anders Hammer Strømman, 2021. "Plastic packaging flows in Europe: A hybrid input‐output approach," Journal of Industrial Ecology, Yale University, vol. 25(6), pages 1572-1587, December.
    15. Joseph Palazzo & Roland Geyer & Sangwon Suh, 2020. "A review of methods for characterizing the environmental consequences of actions in life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 815-829, August.
    16. Edgar Battand Towa Kouokam & Vanessa Zeller & Stefano Merciai & Wouter Achten, 2021. "Regional waste footprint and waste treatments analysis," ULB Institutional Repository 2013/332189, ULB -- Universite Libre de Bruxelles.
    17. Rocco, Matteo V. & Golinucci, Nicolò & Ronco, Stefano M. & Colombo, Emanuela, 2020. "Fighting carbon leakage through consumption-based carbon emissions policies: Empirical analysis based on the World Trade Model with Bilateral Trades," Applied Energy, Elsevier, vol. 274(C).
    18. C. Oliveira & D. Coelho & C. H. Antunes, 2016. "Coupling input–output analysis with multiobjective linear programming models for the study of economy–energy–environment–social (E3S) trade-offs: a review," Annals of Operations Research, Springer, vol. 247(2), pages 471-502, December.
    19. Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    20. Kagawa, Shigemi, 2008. "How does Japanese compliance with the Kyoto Protocol affect environmental productivity in China and Japan?," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 173-188, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:129333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.